Florida Panhandle Real Estate Market Report
The following article addresses the impact of hurricanes on the Florida Panhandle real estate market. In this report you will find information about factors affecting hurricane risk, population growth and post-hurricane effects on real estate markets.
Tuesday, November 15, 2005
Are Hurricanes Going to Blow Away the Florida Real Estate Market?
FOR THE COMPLETE ARTICLE WITH IMPORTANT LINKS CHECK OUT:
http://www.uniquepanhandleproperties.com/blog/florida_panhandle_real_estate_market.htm
by Deborah Orr
UniquePanhandleProperties.com
Many naysayers are predicting the demand for Florida beach property to decrease as a result of recent hurricane activity and concerns of increased hurricanes in the future. Having lived in Florida since 1969, I can only say that I wish that I had started investing 20 hurricanes ago. While quick flippers may be disappointed by the slowing of the exhorbitant appreciation rates of 2004, traditional investors looking for predictable appreciation will still find Florida a sound real estate investment.
According to Stan Smith, director of the University of Florida's Bureau of Economic and Business Research, " The 2004 hurricane effects on Florida?s population growth will likely be small and short-term ? with possible lingering effects in some local areas ? but are not likely to influence long-term population trends, unless there are several consecutive years of high hurricane activity. Despite summertime heat, humidity and hurricanes, Florida has many positive attributes that include warm winters, sandy beaches, low taxes and rapid job growth."
Natural disasters have been around forever. So have beach lovers. People who live on the beach know the risks and apparently consider the benefit to be greater than the risk.
The Beach = Relaxation
Health studies have identified stress as a major factor in disease and aging for decades. Beaches are associated with rest and relaxation. Lazy days building sandcastles with the kids, the gentle sound of the waves crashing onto the shore and romantic sunset walks on the beach lure millions to spend their vacation or "down time" at the beach each year.
Hurricanes are not unique to Florida. They have caused devastation as far north as Rhode Island and they didn't start in 2004, yet Florida has experienced a 30-fold increase in population over the last 100 years and is predicted to increase an average of 1,000 people per day between 2004 and 2010 according to the University of Florida, Institute of Food and Agricultural Sciences (UF/IFAS) . Interestingly, (UF/IFAS) predicts 5 of the 6 "hot" growth areas for this period to be in coastal areas.
This growth trend continues in spite of highly publicized and sometimes catastophic hurricanes which wreak havoc on older structures and mobile homes. Such devastated areas never fail to bring a flurry of investors and developers seeking bargain land where new, luxury real estate can be erected with lower acquisition costs and increased profits because they know that time heals all wounds and the area will again become a thriving destination. This is supported by the fact that many displaced Katrina victims migrated to the beach areas of the Florida Panhandle in spite of the fact that their homes had just been destroyed by hurricane Katrina. The result ......hurricanes cause cities to be redesigned thereby increasing property values.
Until 2001, the state building code required buildings to withstand winds of 90 mph to 110 mph, depending upon proximity to the coastline. In 2001, the requirements increased to 110 and 140 mph for the coastal areas. Damage to new structures in recent storms has been minimal compared to the total destruction of many pre-2001 buildings.
Three areas of the United States demand some of the highest real estate values in the country. Earthquakes are a continual threat in California, New York City will always be an enticing target for terrorism and Hawaiians live under the unpredictable threat of volcanic eruption.
According to the National Oceanic and Atmospheric Administration (NOAA), "The greatest potential for loss of life related to hurricane is from the storm surge, which historically has claimed nine of ten victims". In fact, hurricane surge presents a greater risk to both life and property than hurricane winds. Coastal elevation maps published by the US Environmental Protection Agency (EPA) show that the Florida Panhandle, also known as the Florida Uplands, and specifically The Emerald Coast has some of the highest coastal elevations in the Southeast United States.
The US Dept of the Interior, US Geological Survey (USGS) published a Coastal Classification Atlas to assess coastal storm vulnerability in the Northwestern Panhandle of Florida ( USGS Open File Report 2004-1217) noting that "The impact vulnerability for most storms is low where the beaches are wide, the natural dunes are several meters high and continuous along the beach, and the dunes are stabilized with vegetation." A comparison of 3 coastline maps produced by this project show the following:
The East Pensacola area of Florida's Panhandle has significant overwash terrace and few dunes. Overwash areas occur when storm waters exceed the elevation of the adjacent land and the ocean water flows onshore. Most of the beach width is greater than 30 meters of natural beach but there are a number of areas that are less than 30 meters wide.
The Beaches of South Walton are of Florida's Panhandle has primarily continuous high dunes and wide natural beach greater 30 meters wide.
The Galveston , Texas area has large coastal areas that are absent of protective dunes and have sporatic areas where the beach is less than 30 meters wide.
CONCLUSIONS
Vacationers continue to seek the tranquility of Florida beaches
Hurricanes cause coastal communities to be redesigned when older, damaged structures are replaced with new, more expensive properties
Massive Florida inmigration is predicted to continue
More stringent Florida building codes are mitigating damage to newer structures in the wake of hurricanes.
Coastal dunes and the width of the beach determine vulnerability to storm surges which is the greatest risk to life and property during hurricanes
What's your conclusion?
FOR THE COMPLETE ARTICLE WITH LINKS CHECK OUT:
http://www.uniquepanhandleproperties.com/blog/florida_panhandle_real_estate_market.htm
The following article addresses the impact of hurricanes on the Florida Panhandle real estate market. In this report you will find information about factors affecting hurricane risk, population growth and post-hurricane effects on real estate markets.
Tuesday, November 15, 2005
Are Hurricanes Going to Blow Away the Florida Real Estate Market?
FOR THE COMPLETE ARTICLE WITH IMPORTANT LINKS CHECK OUT:
http://www.uniquepanhandleproperties.com/blog/florida_panhandle_real_estate_market.htm
by Deborah Orr
UniquePanhandleProperties.com
Many naysayers are predicting the demand for Florida beach property to decrease as a result of recent hurricane activity and concerns of increased hurricanes in the future. Having lived in Florida since 1969, I can only say that I wish that I had started investing 20 hurricanes ago. While quick flippers may be disappointed by the slowing of the exhorbitant appreciation rates of 2004, traditional investors looking for predictable appreciation will still find Florida a sound real estate investment.
According to Stan Smith, director of the University of Florida's Bureau of Economic and Business Research, " The 2004 hurricane effects on Florida?s population growth will likely be small and short-term ? with possible lingering effects in some local areas ? but are not likely to influence long-term population trends, unless there are several consecutive years of high hurricane activity. Despite summertime heat, humidity and hurricanes, Florida has many positive attributes that include warm winters, sandy beaches, low taxes and rapid job growth."
Natural disasters have been around forever. So have beach lovers. People who live on the beach know the risks and apparently consider the benefit to be greater than the risk.
The Beach = Relaxation
Health studies have identified stress as a major factor in disease and aging for decades. Beaches are associated with rest and relaxation. Lazy days building sandcastles with the kids, the gentle sound of the waves crashing onto the shore and romantic sunset walks on the beach lure millions to spend their vacation or "down time" at the beach each year.
Hurricanes are not unique to Florida. They have caused devastation as far north as Rhode Island and they didn't start in 2004, yet Florida has experienced a 30-fold increase in population over the last 100 years and is predicted to increase an average of 1,000 people per day between 2004 and 2010 according to the University of Florida, Institute of Food and Agricultural Sciences (UF/IFAS) . Interestingly, (UF/IFAS) predicts 5 of the 6 "hot" growth areas for this period to be in coastal areas.
This growth trend continues in spite of highly publicized and sometimes catastophic hurricanes which wreak havoc on older structures and mobile homes. Such devastated areas never fail to bring a flurry of investors and developers seeking bargain land where new, luxury real estate can be erected with lower acquisition costs and increased profits because they know that time heals all wounds and the area will again become a thriving destination. This is supported by the fact that many displaced Katrina victims migrated to the beach areas of the Florida Panhandle in spite of the fact that their homes had just been destroyed by hurricane Katrina. The result ......hurricanes cause cities to be redesigned thereby increasing property values.
Until 2001, the state building code required buildings to withstand winds of 90 mph to 110 mph, depending upon proximity to the coastline. In 2001, the requirements increased to 110 and 140 mph for the coastal areas. Damage to new structures in recent storms has been minimal compared to the total destruction of many pre-2001 buildings.
Three areas of the United States demand some of the highest real estate values in the country. Earthquakes are a continual threat in California, New York City will always be an enticing target for terrorism and Hawaiians live under the unpredictable threat of volcanic eruption.
According to the National Oceanic and Atmospheric Administration (NOAA), "The greatest potential for loss of life related to hurricane is from the storm surge, which historically has claimed nine of ten victims". In fact, hurricane surge presents a greater risk to both life and property than hurricane winds. Coastal elevation maps published by the US Environmental Protection Agency (EPA) show that the Florida Panhandle, also known as the Florida Uplands, and specifically The Emerald Coast has some of the highest coastal elevations in the Southeast United States.
The US Dept of the Interior, US Geological Survey (USGS) published a Coastal Classification Atlas to assess coastal storm vulnerability in the Northwestern Panhandle of Florida ( USGS Open File Report 2004-1217) noting that "The impact vulnerability for most storms is low where the beaches are wide, the natural dunes are several meters high and continuous along the beach, and the dunes are stabilized with vegetation." A comparison of 3 coastline maps produced by this project show the following:
The East Pensacola area of Florida's Panhandle has significant overwash terrace and few dunes. Overwash areas occur when storm waters exceed the elevation of the adjacent land and the ocean water flows onshore. Most of the beach width is greater than 30 meters of natural beach but there are a number of areas that are less than 30 meters wide.
The Beaches of South Walton are of Florida's Panhandle has primarily continuous high dunes and wide natural beach greater 30 meters wide.
The Galveston , Texas area has large coastal areas that are absent of protective dunes and have sporatic areas where the beach is less than 30 meters wide.
CONCLUSIONS
Vacationers continue to seek the tranquility of Florida beaches
Hurricanes cause coastal communities to be redesigned when older, damaged structures are replaced with new, more expensive properties
Massive Florida inmigration is predicted to continue
More stringent Florida building codes are mitigating damage to newer structures in the wake of hurricanes.
Coastal dunes and the width of the beach determine vulnerability to storm surges which is the greatest risk to life and property during hurricanes
What's your conclusion?
FOR THE COMPLETE ARTICLE WITH LINKS CHECK OUT:
http://www.uniquepanhandleproperties.com/blog/florida_panhandle_real_estate_market.htm